The second largest exporter of IT services in India, Infosys Technologies has decided to stop the hiring process, following slump in demand due to the international financial crisis. It would employ more cost cutting measures to reduce expenses. Earlier, the software services giant had decided to recruit 25,000 people for its various projects.
 
Director - HR, Infosys Technology, Mr T.V. Mohandas Pai said, "We have taken enough lateral hires in the first two quarters and as far as the fresher hiring is concerned, we have already made commitments in advance in various campuses. These are outstanding offers that have to be executed. Therefore, there is no fresh hiring."
 
The chief executive of the company, Kris Gopalakrishnana said that Infosys has created jobs for about 16,000-17,000 till date. He was speaking at a seminar organized by the Confederation of Indian Industry (CII) in New Delhi on Thursday. He said that the company would continue to provide training to 6,000 fresh people as per its job commitment but would not recruit fresh staff. Infosys is also running a two-month paid internship summer program for undergraduate students of various universities worldwide. It has not decided about the closure of that program yet.
 
Gopalakrishnan said that slowing growth rate is a primary reason for the cut in jobs in the outsourcing industry. However, he ruled out any possibility of retrenchment in the near future. The company spends about $1.7 million annually on training and induction of new staff but it would reduce spending following the global slowdown.